What is a 'release' in claim settlement?

A release is the document that finalizes a claim settlement. The claimant signs the release acknowledging full satisfaction of their claim and waiving any further claims against the insurer and (typically) the insured. Types of releases: (1) Full and final release — most common; resolves all claims arising from the incident; cannot reopen; (2) Limited release — covers only specific claims while leaving others open; (3) Open medical release — settles property damage but leaves medical claims open (rare; usually all claims are resolved together). Key release issues: (1) Medical: if injuries may develop later, a full release closes future claims permanently — claimants should be advised to consult attorneys; (2) Multiple claimants: each must sign their own release; minor claimants typically require court approval; (3) Multiple defendants: a release of one defendant may release others (depends on state law); (4) Unknown injuries: some releases attempt to release unknown injuries, raising enforceability questions in some states. Settlement check often serves as a release in small claims (cashing the check constitutes acceptance), but formal releases are standard for larger claims. The release is the insurer's protection against re-litigation. Releases should be carefully drafted and explained to claimants; coercing signatures or misrepresenting the release can lead to bad-faith claims.